New York Market Overview
Office:
Tech tenants signed deals for 1.2 million square feet in the first quarter and added another 441,000 square feet in April. That was almost the total for the entire year in 2023, when tech leasing dropped to its lowest level since 2011.City shrugs off concerns about 14 Wall Street lease and resumes move to building. Renegotiations for the lease were started after ORM’s review.
The United Nations has renewed and expanded its footprint at 2 United Nations Plaza. The U.N. has signed a long-term lease for office space spanning 425,190 square feet across 26 stories at 2 United Nations Plaza. The deal means the U.N., a long-standing tenant at the U.N. Plaza complex, will now occupy nearly all the office space at 2 U.N. Plaza.
OpenAI signed a 90,000-square-foot office lease at 295 Lafayette Street.
Chime signed a 84,000-square-foot lease at 122 Fifth Avenue in Flatiron.
AlphaSense leased 50,000 square feet at Hudson Commons.
Samsung rents 35,000 sf at 1 Penn Plaza.
Paramount Global is looking to sublease 355,000 square feet in total. 253,000-square-foot sublease at 1633 Broadway that has quietly been available for more than a year and a 103,000-square-foot feet sublease at 1515 Broadway.
Retail:
Life Time signed a 20-year lease for 52,000 square feet at 10 Bryant Park. Life Time will operate a fitness and wellness club across four stories of the building and is expected to open at the end of next year.The strip of West 34th Street between Fifth and Seventh Avenues has seen fading demand. The median asking retail rent was $438 per square foot in the second half of 2024, a nearly 8% decline year over year.
Ninety-two of the neighborhood’s 812 stores are listed for lease in Soho, that’s about 11%. 370,000 square feet of vacant space, not all vacancies had listings. The neighborhood’s median asking rent for retail has risen by 7.5% to $385 per square foot. Its availability rate fell by 7% basis points to 11%, which was below the 13.5% rate across Manhattan’s top shopping districts.
Soho has listed 92 of 812 stores (11%) for lease, totaling 370,000 sq ft of vacant space. The median asking retail rent rose 7.5% to $385/sq ft. Its availability rate fell 0.7% to 11%, below Manhattan's top shopping districts' 13.5%.
Soho and Madison Avenue saw its median asking rent grow year over year. Soho also saw a 6.3% yearly spike in visitors to 3.2 million.
About 19% of stores in the Meatpacking District are vacant.
